Correlation Between AudioCodes and Integrated Ventures

Can any of the company-specific risk be diversified away by investing in both AudioCodes and Integrated Ventures at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AudioCodes and Integrated Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AudioCodes and Integrated Ventures, you can compare the effects of market volatilities on AudioCodes and Integrated Ventures and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AudioCodes with a short position of Integrated Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of AudioCodes and Integrated Ventures.

Diversification Opportunities for AudioCodes and Integrated Ventures

-0.69

Correlation Coefficient

AudioCodes  Integrated Ventures

Excellent diversification

The 3 months correlation between AudioCodes and Integrated is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding AudioCodes and Integrated Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Ventures and AudioCodes is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AudioCodes are associated (or correlated) with Integrated Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Ventures has no effect on the direction of AudioCodes i.e., AudioCodes and Integrated Ventures go up and down completely randomly.

Pair Corralation between AudioCodes and Integrated Ventures

Given the investment horizon of 90 days AudioCodes is expected to generate 0.26 times more return on investment than Integrated Ventures. However, AudioCodes is 3.79 times less risky than Integrated Ventures. It trades about 0.03 of its potential returns per unit of risk. Integrated Ventures is currently generating about -0.2 per unit of risk. If you would invest  964.00  in AudioCodes on December 22, 2024 and sell it today you would earn a total of  25.00  from holding AudioCodes or generate 2.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

AudioCodes  vs.  Integrated Ventures

AudioCodes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AudioCodes are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, AudioCodes is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Integrated Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integrated Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with AudioCodes and Integrated Ventures

The main advantage of trading using opposite AudioCodes and Integrated Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AudioCodes position performs unexpectedly, Integrated Ventures can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Integrated Ventures will offset losses from the drop in Integrated Ventures' long position.

The idea behind AudioCodes and Integrated Ventures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.